Hyperliquid Traders Point to AQAv2 as a Key Upgrade With HYPE Outperforming the Market
TL;DR
- Burn engine: Hyperliquid’s fee-driven buyback system has already removed $1.27 billion in HYPE and scales with trading volume.
- AQAv2 yield: The upcoming AQAv2 upgrade will redirect reserve yield and could add up to $160 million in annual buyback pressure.
- Market reaction: Trump’s comments on regulatory progress pushed HYPE up 20% to 25%, boosting its market cap toward $18 billion.
Hyperliquid is back in the spotlight as traders highlight a structural shift that could reshape how its HYPE token captures value heading into the next market cycle. The token is holding near $77, and trader Pentosh1 argues that its fee-burn engine, soon to expand under a mechanism called AQAv2, is a major reason why HYPE has remained one of the strongest performers in the bear market.
AQAv2 Set to Expand the Burn Engine
Pentoshi1’s thesis centers on Hyperliquid’s revenue-sharing model, where nearly all trading fees from perpetual futures and spot markets are used to buy and burn HYPE rather than accumulate in a treasury. That approach has already removed 462 million tokens worth about $1.27 billion since November 2024, with roughly 99% of protocol fees funding the buybacks. The scale of this burn program is tied directly to how much trading Hyperliquid processes, and the exchange is estimated to handle between 40% and 70% of decentralized perpetual futures volume.
… Continue reading the full article at the original source below.
